BURY North MP David Chaytor has been caught up the expenses scandal after he admitted claiming thousands of pounds of taxpayers' cash for a non-existent mortgage.

Mr Chaytor, who has been suspended by the Labour party, has said he will repay £13,000 paid out in interest on a loan which had already been repaid, blaming "an unforgivable error in my accounting procedures for which I apologise unreservedly".

Mr Chaytor is the latest victim from the Daily Telegraph's publication of leaked expenses claims which have rocked Westminster.

His admission will further fuel public demands for a police inquiry into expenses claims as police and prosecutors prepare to meet to discuss potential investigations.

Lawyers have said there would appear to be a case for some to be pursued for theft or other offences.

In a statement, Mr Chaytor said: "In respect of mortgage interest payments, there has been an unforgivable error in my accounting procedures for which I apologise unreservedly, "I will act immediately to ensure repayment is made to the Fees Office."

He was also accused by the newspaper of "flipping" his second home expense claims between five different properties since 2004.

He said the moves were forced by "changing and complex family circumstances".

"During this time, I should have ensured that my mortgage had been switched to the flat in which I was temporarily living. Stupidly and inexplicably, and at a time of great personal and family stress, I failed to ensure that this was done."